Ocado has seen its group revenue increase by 12.6% year-on-year to £1.5bn, as the firm’s losses dropped by almost 47% to £154m in the same period.

The grocery retailer said its H1 adjusted EBITDA increased by £54.6m year-on-year, with technology being a major contributor to this jump.

As a result of these figures, shares at Ocado have jumped 11% to 378 pence per share, according to The Guardian, after shares at the firm dropped by 47% across the year following concerns among some clients.

Chief executive officer at Ocado, Tim Steiner, said: "We have come through an unprecedented period for online grocery, with multiple years of high food inflation following a surge in demand during the pandemic. The global channel shift to online has now resumed and Ocado is uniquely well-positioned to take advantage of the opportunity.

"The success of our partners is our top priority, and we are focused on helping them execute their online strategies to deliver attractive returns from their investment in our technology. While there remains more to do, we look forward to making continued progress over the rest of the financial year and beyond, as we build a profitable, cash-generating, technology business."

Looking ahead, Ocado expects its technology solutions revenue for the full financial year to increase 15% to 20%, with a mid-teens percentage adjusted EBITDA for the same period.

Furthermore, it added that it continues to see improvements in its logistics division, adding that it has "confidence" that the retail business will continue its momentum in the rest of the financial year, with revenue expected to be in the mid-high single digits percentage.

Equity analyst at Hargreaves Lansdown, Aarin Chiekrie, added: "Ocado’s half-year results were a mixed basket. Progress in some areas was good, but the group’s still loss-making and some investors are beginning to lose patience.

"Future growth relies on its so-called technology solutions business, where Ocado charges third-party retailers to use its robotic systems. Hundreds of thousands of orders are processed each week with the help of its automated bots scurrying around the trademarked grid system.

"The retail side of the business is showing signs of improvement, with revenue up at double-digit rates. Growth has largely been fuelled by increased customer numbers rather than letting price hikes do the heavy lifting. That helps foster a positive value perception among its customers, but raising prices slower than inflation will put pressure on profitability, meaning other areas of the business will have to pick up some of the slack."

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